Sequans to Expand 4G and 5G Partnership with Renesas
1/5/2022
Reinforced Business Agreements Strengthen Go-to-Market Capability
finance.yahoo.com /news/sequans-expand-4g-5g-partnership-130000306.html
PARIS, Jan. 5, 2022 /PRNewswire/ -- Sequans Communications S.A. (NYSE: SQNS), a leading provider of cellular IoT chips and modules, announced today an expansion of its existing 4G/5G licensing agreements with Renesas Electronics Corporation (TSE:6723, "Renesas"), a premier supplier of advanced semiconductor solutions, granting special rights to Renesas that strengthen the go-to-market opportunities for Sequans' LTE-M/NB-IoT Monarch 2 and Taurus 5G platforms. In particular, by building on Renesas' extensive sales, distribution and customer support capabilities, the deal allows Sequans to expand its serviceable addressable market to India. Additionally, Renesas will take a small equity stake in Sequans, and Renesas' Executive Vice President and Head of IoT and Infrastructure business unit, Dr. Sailesh Chittipeddi, will be nominated for election to the Sequans board of directors at the June 2022 shareholder meeting. The combined value of the business agreements and the equity investment, which is expected to close by January 14, 2022 subject to customary closing conditions, is approximately $20 million.
These multi-year agreements are designed to allow Sequans and Renesas to achieve several mutually beneficial goals. First, the agreements provide better control of manufacturing and product cost, which is especially important given the current supply challenges. Second, the agreements reinforce the joint product offerings and expand market opportunities. Third, the equity stake and board seat facilitate management alignment to strengthen the partnership and make the joint business successful.
"We are pleased to further strengthen our relationship with Renesas with both the LTE-M/NB-IoT and 5G businesses, as well as the opportunity to add Dr. Chittipeddi to the Sequans board," said Georges Karam, CEO of Sequans. "The expanded agreements reinforce our sales strategy and provide access to numerous new opportunities with a unique competitive solution while allowing us to leverage Renesas' strong global brand and manufacturing advantages."
"Renesas values Sequans' comprehensive cellular IoT offering, which brings our global customers and us advanced 4G/5G IoT capabilities that can address the broadest scope of applications and develop new markets with unique needs," said Dr. Sailesh Chittipeddi. "Our deepening collaboration with Sequans enhances our global presence with best-in-class cellular IoT solutions." |
